Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

Excluding several non-recurring items, FFO for second quarter 2012 was $1.62 per share compared with $1.43 in the year-ago quarter reflected in a year-over-year increase of 13.3%. Recurring FFO for the second quarter of 2012 beat the Zacks Consensus Estimate by 9 cents.

During the reported quarter, Public Storage recorded a 5.4% increase in total revenues to $457.7 million from $434.4 million in the year-earlier quarter. Total revenues for the reported quarter were well ahead of the Zacks Consensus Estimate of $430 million.

Same-store revenues increased 5.1% year over year to $394.7 million during the quarter, while net operating income (NOI) climbed 8.3% to $273.7 million. The increase in same-store revenues was primarily due to a 4.9% rise in realized annual rent per occupied square foot to $13.23. Occupancy in the same-store portfolio was 92.6% at quarter-end versus 92.3% in the prior-year period.

Public Storage currently has a 49% stake in Shurgard Europe, which has interests in 189 facilities (10 million net rentable square feet) located in seven Western European countries. Public Storage is also the managing member of the JV that owns Shurgard Europe.

During the reported quarter, same-store revenue in Shurgard Europe increased 0.4% to $47.0 million. Same-store NOI for Shurgard Europe increased 2.2% year over year to $26.8 million, driven by a 2.7% rise in realized annual rent per occupied square foot to $25.52.

During second quarter 2012, the company acquired four self-storage properties for $46 million cash. Spanning 316,000 net rentable square feet, two of the acquired properties are located in California, and one each in Florida and New York. Subsequent to the quarter-end, Public Storage acquired one self-storage facility (61,000 net rentable square feet) in California for $6 million in cash. The company is currently under contract to acquire two additional properties for $31 million.

At quarter-end, Public Storage had $438.5 million of cash and cash equivalents. The company maintained its quarterly dividend at $1.10 per share. Funds from operations available for distribution (FAD) among common shareholders exceeded the regular common distributions by about $70.2 million during the quarter.

We maintain our Neutral rating on the stock, which presently has a Zacks #3 Rank, translating into a short-term Hold rating. We also have a Neutral recommendation and a Zacks #2 Rank (short-term Buy rating) for Sovran Self Storage Inc. , one of the competitors of Public Storage.

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Resources

Client Support

Follow Us

Zacks Research is Reported On:

Yahoo

MSN

Marketwatch

Nasdaq

Forbes

Investors.com

Morningstar

Copyright 2017 Zacks Investment Research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2016 and were examined and attested by Baker Tilly Virchow Krause, LLP, an independent accounting firm. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit performance for information about the performance numbers displayed above.